U.S. Emissions Standards for Passenger Vehicles

EPA Finalizes Greenhouse Gas Standards for Passenger Vehicles, Paving Way for a Zero-Emissions Future

WASHINGTON (Dec. 20, 2021) – Today, the Environmental Protection Agency (EPA) is finalizing the most ambitious federal greenhouse gas (GHG) emissions standards for passenger cars and light trucks ever. The final standards, for Model Years (MY) 2023 through 2026, leverage advances in clean car technology to unlock $190 billion in net benefits to Americans, including reducing climate pollution, improving public health, and saving drivers money at the pump. The final rule also delivers more net benefits to consumers than the proposed rule showcasing how zero-emission vehicles are more affordable and more efficient for consumers.

The ambitious standards through 2026 also set the light-duty vehicle greenhouse gas (GHG) program on track to provide a strong launch point for the Agency’s next phase of standards for MY 2027 and beyond. EPA is planning to initiate a separate rulemaking to establish multi-pollutant emission standards under the Clean Air Act for MY 2027 and later that will speed the transition of the light-duty vehicle fleet toward a zero-emissions future consistent with President Biden’s Executive Order, “Strengthening American Leadership in Clean Cars and Trucks.”

“The final rule for light duty vehicles reflect core principles of this Administration: We followed the science, we listened to stakeholders, and we are setting robust and rigorous standards that will aggressively reduce the pollution that is harming people and our planet – and save families money at the same time,” said EPA Administrator Michael Regan. “At EPA, our priority is to protect public health, especially in overburdened communities, while responding to the President’s ambitious climate agenda. Today we take a giant step forward in delivering on those goals, while paving the way toward an all-electric, zero-emissions transportation future.”

The standards finalized today are the most ambitious vehicle emissions standards for greenhouse gases ever established for the light-duty vehicle sector in the United States. They are based on sound science and grounded in a rigorous assessment of current and future technologies with supporting analysis that shows the standards are achievable and affordable. EPA’s final standards for 2025 and 2026 deliver even greater net benefits and emissions reductions than those proposed in the initial rulemaking stage in August of 2021. Through 2050, the program will result in avoiding more than 3 billion tons of GHG emissions which is equivalent to more than half the total U.S. CO2 emissions in 2019.

These ambitious standards are cost-effective and achieve significant public health and welfare benefits. The benefits of this rule exceed the costs by as much as $190 billion. Benefits include reduced impacts of climate change, improved public health from lower pollution, and cost savings for vehicle owners through improved fuel efficiency. American drivers will save between $210 billion and $420 billion through 2050 on fuel costs. On average over the lifetime of an individual MY 2026 vehicle, EPA estimates that the fuel savings will exceed the initial increase in vehicle costs by more than $1,000 for consumers.

While these standards are ambitious, they provide adequate lead time for manufacturers to comply at reasonable costs. EPA’s analysis shows manufacturers can comply with the final standards with modest increases in the numbers of electric vehicles entering the fleet. By MY 2026, EPA projects that the final standards can be met with sales of about 17 percent electric vehicles (EVs), and wider uptake of advanced gasoline engine and vehicle technologies available today.

Auto companies continue to invest in, and develop, zero-emissions vehicles to meet rising consumer demand, while making make public commitments to build these vehicles in the future. Today’s final standards have been calibrated to align with and support those investments. Companies are announcing unprecedented plans for an increasing diversity and production volume of zero- and near-zero emissions vehicle models, while also implementing a broad array of advanced gasoline vehicle GHG emission-reducing technologies. As the GHG standards get stronger over four years, sales of EVs and plug-in hybrid vehicles will grow from about 7 percent market share in MY 2023 to about 17 percent in MY 2026, the agency projects. These increasing levels of EVs will position the United States to achieve aggressive GHG emissions reductions from transportation over the long term.

Under the Bipartisan Infrastructure Law, $7.5 billion is allocated for EV charging and related programs with a target of having 500,000 public charging stations by 2030, with a focus on creating a convenient national network and providing equitable access to rural drivers and overburdened and underserved communities. More than $7 billion is set aside for investments in battery manufacturing, materials, and recycling to drive down costs, increase sustainability, and build the batteries that will power the future vehicles here in the United States. The surge in charging infrastructure investments coupled with battery technology advancements, increased range, and reduced battery and vehicle costs are making EVs more attractive than ever to consumers.

Moving to a clean energy future will benefit our most vulnerable communities. Areas located close to major roads and highways will have less exposure to air pollution. Overburdened and underserved communities are especially vulnerable to the impacts of climate change. These standards will help address climate change and reduce climate impacts on vulnerable communities.

Final Rule to Revise Existing National GHG Emissions Standards for Passenger Cars and Light Trucks Through Model Year 2026

Rule Summary

The Environmental Protection Agency (EPA) finalized federal greenhouse gas (GHG) emissions standards for passenger cars and light trucks for Model Years (MY) 2023 through 2026. The final standards leverage advances in clean car technology to unlock $190 billion in net benefits to Americans, including reducing climate pollution, improving public health, and saving drivers money at the pump. These standards are the strongest vehicle emissions standards ever established for the light-duty vehicle sector, and are based on sound science and grounded in a rigorous assessment of current and future technologies. The updated standards will result in avoiding more than 3 billion tons of GHG emissions through 2050.

These standards set the light-duty vehicle greenhouse gas (GHG) program on track to provide a strong launch point for the Agency’s next phase of standards for MY 2027 and beyond. EPA is planning to initiate a separate rulemaking to establish multi-pollutant emission standards under the Clean Air Act for MY 2027 and later that will speed the transition of the light-duty vehicle fleet toward a zero-emissions future consistent with President Biden’s Executive Order, “Strengthening American Leadership in Clean Cars and Trucks.”

Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards

By the Numbers

Transportation is the single largest source of GHG emissions in the United States, making up 29 percent of all emissions.
Passenger cars and trucks contribute 58 percent of all transportation sources and 17 percent of total U.S. GHG emissions.
To address the urgent need to curb air pollution emissions from transportation, the Environmental Protection Agency (EPA) is finalizing aggressive greenhouse gas (GHG) emissions standards for passenger cars and light trucks for Model Years (MY) 2023-2026.
The final program represents the most ambitious light-duty vehicle GHG standards ever established and will…
- reach a projected industry-wide target of 161 grams CO2/mile, or 40 miles per gallon value on fuel economy window stickers in 2026 (This equates to a compliance value (under EPA’s 2-cycle compliance tests) of 55 mpg.)
  - The final emission standards targets for 2023-2026 increase in stringency by between 5-10 percent in each model year.
  - The standards they replace increased in stringency by only 1.5 percent year over year.
  - By MY2026 the final emissions targets are 47 grams of CO2 /mile lower than the standards they replace.
- result in 3.1 billion tons of avoided CO2 emissions through 2050.
  - Cumulative GHG emissions avoided through 2050 are roughly equal to over half of the net total CO2 emissions in the U.S. in 2019 (U.S. GHG Inventory, EPA 2021).

- These more ambitious standards are feasible at reasonable costs and achieve significant GHG emissions reductions and public health and welfare benefits. The rule’s benefits exceed the costs by $120 to $190 billion through 2050.
- Between $8 and $19 billion of the total benefits through 2050 result from improved public health as a result of reduced emissions of nonGHG pollutants, including NOx and other pollutants that contribute to fine particulates (PM2.5).
- Other benefits include reduced impacts of climate change and cost savings for vehicle owners through improved fuel efficiency.
- reduce gasoline consumption in the U.S. by more than 360 billion gallons — reaching a 15 percent reduction in annual U.S. gasoline consumption in 2050.
- save car owners money – on average over the lifetime of an individual MY 2026 vehicle, EPA estimates that the fuel savings will exceed the initial increase in vehicle costs by approximately $1,080 for consumers.
- Total fuel savings overall is between $210 billion and $420 billion through 2050.
- Maintain momentum towards expanding market share of zero emissions vehicles, with the standards resulting in battery electric and plug-in hybrid vehicle market share of 17 percent by MY 2026.

Additional Resources (EPA Links)

Final Rulemaking: Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards (pdf) (pre-publication, signed December 20, 2021)
Regulatory Impact Analysis Revised 2023 and Later Model Year Light Duty Vehicle GHG Emissions Standards (pdf) (December 2021, EPA-420-R-21-028)
Fact Sheet: Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards (pdf) (December 2021, EPA-420-F-21-077)